Harrisburg takes over public works property via eminent domain for $2.2 million

The city of Harrisburg filed court documents this month to take over the former Brenner auto dealership on Paxton Street, which has served as the city’s public works building since late 2013.

The city filed “declaration of taking” paperwork in the Court of Common Pleas Friday to take the property via eminent domain in exchange for $2.2 million, which is the amount the city calculated as fair compensation after hiring an appraiser.

The amount is slightly lower than the $2.5 million the city had budgeted in recent years to purchase the property at South 19th and Paxton streets. City officials have been trying to buy the property from Michael Brenner since at least 2017, but they could not agree on a price, which eventually prompted a standoff over rent payments.

The filing means the city immediately takes possession of the property, since Brenner is not challenging the taking, and the city no longer will be required to pay rent for the property.

The $2.2 million will be transferred to Brenner in a few weeks.

Brenner’s attorney, Adam Klein, said his client plans to appeal the compensation amount, because his client believes the property is worth more than $2.2 million. The property comprises the main building and lot as well as seven adjoining vacant lots and duplexes.

Brenner is having his own appraiser calculate the fair market value.

The eminent domain action does not affect the long-simmering rent dispute between the city and Brenner. The city stopped paying its annual $192,000 rent two years ago after Brenner became “nonresponsive” in negotiations over the property.

The city now owes about $850,000 in back rent, interest and attorney fees, according to Klein. That amount would be in addition to the purchase price.

If city officials had simply filed for eminent domain last year, or two years ago, they could have avoided months of back rent and fees, Klein said. For their part, city officials said they were trying to negotiate with Brenner in good faith.

After Brenner files his appeal for the compensation amount, the city could negotiate with him for a higher amount or Brenner could ask for a “board of viewers” to hear the dispute. The board acts as an arbitration panel with three members chosen by the court’s president judge. If it goes to that, the hearing likely take place in 2020.

If the panel agrees that the property is worth more than the city paid, the city could be forced to pay the difference, plus interest, unless it appeals and sends the case to a jury.

The city hired an outside attorney, Peter Carfley of Lavery Law, to file its declaration. The paperwork indicates the city eventually would like to expand or rebuild the public works building at the site..

Mayor Eric Papenfuse said the city currently doesn’t have the money or ability to borrow money to make that happen. The project is not listed in the city’s five-year plan, but is considered among the city’s longer-term plans, Papenfuse said.

The city started leasing the building from Brenner, of the Brenner Family of Automotive Dealerships, after the city sold its incinerator in late 2013, forcing the abrupt move of the public works department that was housed at the incinerator.